The Finance Minister of the Russian Federation, Anton Siluanov, spoke in a recent interview with Naila Asker-zade on the Vesti program on Channel Russia 1. He affirmed that the Ministry of Finance intends to keep the tax rate for Russian citizens earning income while abroad at 13 percent for residents. In other words, money earned by Russians outside the country will face taxation at a level comparable to what residents pay on earnings at home, ensuring a consistent approach to personal income tax across borders.
According to the minister, the government aims to position remote work and cross-border economic activity within a clear tax framework. The assurance is that income generated by Russians from foreign assignments or remote work conducted from abroad will be taxed in Russia at the same 13 percent rate as income earned within Russian borders, aligning external earnings with domestic tax obligations for residents who maintain ties to the Russian tax system.
Earlier discussions in the Ministry of Finance explored measures to formalize the obligation of employees of Russian companies who perform their duties remotely from abroad to contribute taxes in Russia. The goal was to eliminate ambiguity surrounding where income from Russian employers should be taxed when the worker resides outside Russia for substantial periods.
It was noted that Russians who spend more than 183 days abroad in a calendar year could lose tax residency in the Russian Federation. The proposed regulation sought to remove questions about how income from Russian employers should be taxed when the employee is physically outside the country for a long stretch. The overarching intent remains to clarify taxation rules for cross-border work arrangements, reduce residency ambiguities, and ensure that tax compliance is straightforward for individuals maintaining employment with Russian entities while abroad, without creating an undue burden on those who split time between Russia and foreign locations.